Local councils to get control over local taxes

As part of the Spending Review and Autumn Statement, Chancellor George Osborne has revealed that councils will be given even more powers over decision making in their local areas.

Osborne highlighted how local councils will be able to add two per cent on council tax to pay towards social care in their areas, if they wish.

From 2020, councils will also be able to keep money from business rates collected from shops and businesses, to spend on local services like street repairs, libraries and transport. Council tax is currently made up from money that goes to local services like police and fire services as well as local councils.

Local police and crime commissioners will also have the ability to raise local council taxes, as from next April, police forces will be able to increase the amount they require from council tax collections by two per cent.